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Multnomah County Business Income Tax Changes for TY2020

March 27, 2020

Dear Tax filer:

Thank you for choosing to do business in Multnomah County. With support from businesses like you that pay the Business Income Tax (BIT), the County is able to deliver services that support the social and health services, public safety, and wellbeing of our community and make Multnomah County one of the nation’s most attractive places to live, work, and conduct business.

The purpose of this letter is to notify you that the Board of County Commissioners voted unanimously on March 19, 2020, to make three changes to the County’s BIT code. For tax years beginning on or after January 1, 2020, Multnomah County will: increase the tax rate for the BIT from 1.45% to 2.00%; increase the gross receipts exemption from less than $50,000 to less than $100,000; and increase the maximum owner’s compensation deduction from $108,000 to $127,000.

For tax year 2020, taxpayers making estimated quarterly payments can continue to avoid being assessed quarterly interest by paying 100% of the prior year’s BIT liability. Taxpayers may also avoid quarterly interest by paying 90% of the total current tax year’s BIT liability by the original due date for that BIT return. If a taxpayer would have met the 90% threshold under the prior year’s rate (1.45%) for tax year 2020, but does not meet the 90% threshold under the new BIT rate (2.00%), quarterly interest will be waived. Taxpayers may submit a waiver request along with their 2020 combined tax return.

Should you have any general questions, please contact Revenue Division of the City of Portland at (503) 823-5157, which administers the BIT on behalf of Multnomah County.